DOTZ NANO LIMITED — Capital/Financing Update 2009

Feb 19, 2009

20 February 2009

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CAPITAL RAISING AND OPERATIONAL UPDATE

CAPITAL RAISING

The Company has raised a total of $17.5 million from an institutional placement of 17.5 ordinary shares at an issue price of $1 representing a 14.5% discount to the closing price on Tuesday 17 February. The issue will be made within the Company’s 15% limit without shareholder approval.

The Company is scheduled to commence production in July of this year. Funds raised will be applied to accelerate the case for an incremental expansion of production, ordering the long lead items required for the refurbishment of the flotation circuit and for working capital.

The Placement was jointly managed by Macquarie Equity Capital Markets and Euroz Securities Limited. The shares will rank equally with existing NFE ordinary shares.

The company's smaller Australian and New Zealand shareholders will have the right to also subscribe for new shares at the same price via a Share Purchase Plan (SPP). Full details and documentation about the SPP will be sent to all shareholders shortly.

Northern Iron’s CEO, Mr Mick McMullen stated “that although already debt free and on schedule and budget to recommission their mine in mid 2009, the placement will enhance their flexibility and support their other initiatives and opportunities that exist, including an expansion study, refurbishment of the flotation circuit and the possible construction of a pellet plant.”

Mr McMullen admitted that while construction is near completion and capital items already ordered are on a fixed and firm basis, the normal completion risks are minimal, but he said "that the board was keen to maintain their debt free balance sheet and any de-risking in the current environment was seen as a wise decision."

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OPERATIONAL UPDATE

Schedule

The critical path item remains the fabrication and shipping of the primary grinding mill shell. As previously announced, the mill supplier has advised of a 3 week delay in the fabrication of the mill shell. The company expects this to result in some delay to commissioning of up to 3 weeks.

Process Plant

A significant amount of new equipment has recently been delivered to site and is in the process of being installed. This includes the secondary and tertiary crushers, the tailings thickener and the HV switchgear.

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Tailings thicker installation

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Tertiary Crusher installation

Pouring of the primary mill foundation was commenced during the week and is planned for completion by the start of April when the first components of the mill are scheduled to arrive.

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Primary Mill Foundation - first concrete pour 18 Feb 2009

For and on behalf of the Board

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Mick McMullen

Managing Director and Chief Executive Officer

About Northern Iron: Northern Iron (ASX: NFE) is a Perth based company that was formed to acquire the Sydvaranger Iron Project in Norway. The Company was listed on the ASX in December 2007 and raised sufficient equity to restart production of iron concentrates from the Sydvaranger Iron Project. Production is planned at a rate of 2.9Mtpa of concentrates grading 67.5% Fe over a mine life of in excess of 30 years.

The Sydvaranger Iron Project has a long history of production from 1910 until 1997 and much of the infrastructure is still intact. The Company’s business plan is based on recommencing production as quickly as possible to take advantage of the forecast strong iron ore prices over the near term.

Northern Iron has 165 million shares and 4.7 million unlisted options on issue. After completion of the recent capital raising, the Company will have 182.5 million shares and 4.7 million unlisted options on issue.

Visit our website at www.northerniron.com.au where further information about the Company can be found.